Each month, the newsletter contains nine recommendations for bonds, preferreds and convertibles. The selections take into consideration not just the quality and return the security offers, but also its availability, i.e. many attractive securities are not buyable by individuals. Below is a sample of one of how previous recommendations were presented.
First American Corporation, 7.55% Series FAR; Par $25.00; Current
Price $19.66; Current Yield 9.57%; Exchange NYSE; Rated Baa3/
BBB-; Call Anytime at $25.00; Yield to Call High; Pay Cycle 4/10; CUSIP
740434659; Family Third Party Trust Preferreds; Acronym PPLUS; Symbol
PJS (no preferred designation).
The First American Corporation (FAF) a global company is the countries largest provider of business information. They use their vast data resources along with analytics to supply businesses and individual consumers with information to support major events such as job hunting, renting an apartment, buying a car or house, getting a mortgage and opening or buying a business. First American operates within five primary business segments, including: Title Insurance and Services, (they underwrite almost 25% of all title insurance policies in the US) Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Business Solutions. For the third quarter 2009 the company reported revenue of $1.57 billion, slightly higher than the $1.52 billion posted for the same period in 2008. Net income came in at $55.4 million compared to a net loss last year of $8.4 million. First American is planning a spin-off next year of its title and specialty insurance operations thus creating two publicly traded companies. The existing holding company will consist primarily of businesses that offer data on mortgages, properties and credit. This preferred would work well in a medium-risk portfolio. Buy at or below $21.00.
Affiliated Managers Group, Inc., 5.10%; (Preferred); Par $50.00; Current
Price $40.00; Current Yield 6.30%; Exchange OTC; Rated NR/BB;
Soft call 04/11 at $50.00; Conversion Rate 0.3333 Common Stock Price
$67.35; Premium 80.20%; Pay Cycle 1m; CUSIP 00169X203; Family Optional;
Symbol AMGZO; (no preferred designation).
Affiliated Managers Group (AMG) is an asset management company with equity investments in a diverse group of boutique investment management firms (Affiliates). As of the end of the third quarter, aggregate assets under management of AMG's Affiliates was $205 billion in more than 300 investment firms. The company's strategy is to generate growth through acquisitions as well as growth through existing affiliates. AMG also provides assistance to its affiliates in marketing, distribution, product development, strategic matters and operations. Third quarter 2009 net revenue was $197.92 million, significantly lower than the $270.94 million posted for the same periods in 2008. Net income for the quarter was $17.77 million, slightly higher than the $16.47 million posted the previous year. This issue trades on the Over-The- Counter pink sheets. This convertible is in our new "Driver" model portfolio because of its unique structure and business plan. Buy at or below $41.75.